The Competition Commission of South Africa has referred a complaint against eight major cargo shipping companies to the Competition Tribunal for prosecution. The regulator alleges the firms engaged in price-fixing practices spanning a decade.
The companies named in the referral are Maersk South Africa, Mediterranean Shipping Company (MSC), CMA CGM Shipping Agencies South Africa, Pacific International Lines South Africa (PIL), Mitsui OSK Lines South Africa (MOL), Evergreen Agency South Africa, COSCO Shipping Lines South Africa, and K Line Shipping South Africa.
According to the commission, the respondents allegedly colluded to fix the general rate increase (GRI) charged to customers for shipping general cargo.
The affected routes include shipments from South Africa to Asia and West Africa, and vice versa. The alleged conduct is said to have occurred between 2008 and 2018.
The investigation reportedly found that the shipping lines charged identical GRIs for specific routes, including Shanghai, Ningbo, and Shekou to Durban, as well as from Durban to Hong Kong and Qingdao to Durban. The commission stated this conduct contravenes the country's Competition Act.
Commissioner Doris Tshepe said, “The dismantling of the cartel will reduce the price of goods imported to South Africa for the benefit of consumers and will also reduce the costs of exports out of South Africa, which will, in turn, render the South African exports competitive in the world markets.”
